Student Loan Forgiveness

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An appeals court put this student loan forgiveness plan on hold. It was challenged by a group of Republican-led states. They sought to block the program saying it was beyond the president's authority. The justices' decision in this case is also being closely watched as a test of the balance of power between the White House and Congress.

President Biden’s plan to forgive federal student loan debt for millions of Americans has been frozen since a handful of Republican-led states sued to stop it. They argue the president doesn’t have the power to wipe away billions of dollars of debt on his own. It’s now up to the US Supreme Court to decide if they’re right.

Bloomberg Supreme Court correspondent Greg Stohr joins this episode to talk about the arguments on both sides, and where the 6-3 conservative majority might come down. And personal finance reporter Claire Ballentine explains what happens next for Americans with student debt if the court upholds Biden’s plan–or knocks it down.